Waymo is being asked to monetize beyond the ride-sharing use case. What should they do?
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Regarding the time range, I would like to propose the strategy in the coming 5-years, so that Waymo can have the time to adapt and develop. [Sounds good]
The goal of this strategy should be to maximize the revenue of the company in 5 -years. Is it ok? [Yes, go ahead]
Let's first take a look at waymo, then we can brainstorm the different options Waymo can consider, then we can discuss the pros and cons of those options.
First, let's take a look at Waymo:
- Strength:
- Advanced technology, a few years ahead of competitors.
- The technology can free up human from the driving task.
- The technology is independent from Cars, can be add ons.
- The technology is safer than human.
- The technology doesn't has the working hour limit.
- Weakness:
- Waymo doesn't make cars
- Selfdriving kit still expensive
- It remains a challenge for Waymo/Google to manage large scale operation.
- Long distance freight company
- Local parcel delivery
- Metro bus system
- Airport shuttles
Revenue | Investment | Operation | |
1 | Low, as it's 1-off | Low | Low |
2 | Medium, will have continued revenue | Low | Low |
3 | High, due to higher value share | Medium | High |
4 | High | High | High |
5 | Medium | Low | Low |
Based on the assessment, I will probably wouldn't suggest to go with option 3 and 4 due to Google's weakness in manufacturing and operation. I will suggest Waymo to go ahead with Option 2, to license our SW stack, due to the continued revenue opportunity and low operational needs, and in parallel, pursue option 5 by making sure Google's services are integrated in the target vehicle, similar to the Android approach
First, I am not clear with the questions so these are the questions I will ask the interviewer and also make some assumptions.
I understand waymo is an automated ride-sharing project which google has been testing for years now. I assume now the project is live and the model is "riders pay for their rides similar to uber/lyft" The only difference is there is no cost associated with drivers here since it's driverless.
Interview: Yes you are correct
Great, so the way waymo makes money to cover the operational cost and profit margin is just on ride-sharing.
Interview: Yes
So our "Goal" is to think of other strategies to monetize waymo.
Interviewer: Yes, that's correct
Does it have to be waymo itself ? or Can I use waymo technology to come up with a new product or service?
Interviewer: Let's just stick to waymo not keen on new products at this moment.
Thank you, before going into different options. Let's see our strengths, competitors, and user pain points.
Strengths
1) Complete autonomous vehicle, hours of testing, and google technology
2) Smart driving directions/routes and maps
3) Eco friendly and cheaper option
4) Optimal route and riders safety
5) Trust in googles product and technology
6) Integrated with googles ecosystem google maps, notification, voice assistance, search etc
Competitors
1) To my knowledge we have Uber, Lyft experimenting on similar technologies
2) Hude customer base and adoption since these companies launched much before google
3) Their core business is ride-sharing, expertise in this business
Comparing and looking at the option, we have stiff competition with existing services who have already mastered in similar services.
So options for us is to use our technology and trust factor to move into a different segment, acquisition for market share (leaving it out for our case)
The freight services are still in its early stage we have Amazon using drones and Uber testing it out as well. After Covid, we see life has changed and retail and online shopping have increased tremendously. This opens the door for freight services with Nikola and Tesla all working on e-Trucks waymo can collaborate and partner with them for MVP launch. This falls under entering into the delivery market this could proportionally reduce the shipping cost of Google store if complemented.
The other option is waymo can collaborate with the government on transportation projects.
I don't know if there is any framework to answer such questions.
Like over here, perhaps I can't ask what is the business goal(it's clear) .
Maybe I can ask do you have any customer segment in mind?
Do you have any region in mind ( I guess no applicable)?
if none of those frameworks works and it's only about listing the relevant ideas that I can list I will go like this.
Candidate: So let me first under what Waymo is
It's an autonomous car, that's used for ride-sharing, people use it using an app.
The current person is perhaps the daily commuters.
One of the greatest pain points that it solves its, it reduces the stress of driving.
Is that a fair understanding?
interviewer: Yes
Candidate: I would like to think about what's the strength we have
A) We have these autonomous car/trucks.
B) We have a huge customer base.
C) With Google Maps we have lots of information about, point of interests, restaurents & business.
D) We have weather information/predictions.
E ) I am also thinking about what Google sells, ummmm nothing ...
F) I am also thinking about what all google can advertise to sell, actually a lot.
1.) Transport small items with safety and security within the same cars.
2) Make autonomous delivery service, people can book shipment through a mobile app and those are delivered at the destination and picked by someone else.
3) Can be booked like Uber, have our own fleet.
4) Can be used especially for children, for sending them school and back home
idea | investment | User impact | Business impact |
Transport small items with existing rideshare | Small | Small | Small |
Autonomous delivery services | medium | medium to big | medium to big |
Just like Uber | medium to big | big | big |
children transport | medium | big | small |
I think given that comparison. I would like to go and enter into Uber's market.
start small from one city and scale later.
The delivery idea is also good, and If I can be financed for that I will go for both, Uber and Delivery.
But if I have to choose between the two I will select Uber because the TAM is bigger.
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Guys by the way anyone aware of any framework for such questions?
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